State bonds prove popular
Investors showed an eagerness to support Connecticut projects and obligations via a troika of bond sales designed to keep the state”™s books richer in black ink. The bonds will fund UConn expansion and general obligations, providing backing for what the state treasurer termed “attractive financing costs.”
State Treasurer Denise L. Nappier recently announced the results of three successful state bond sales this summer.
“While many have been vacationing this summer, our office has been busy selling bonds at competitive rates to fund almost $900 million in new projects, helping to invest in our State”™s future, create jobs and stimulate our local economy,” Nappier said.
The first sale of $223.9 million of bonds for the UConn 2000 infrastructure program resulted in a combined overall interest cost of 3.39 percent and consisted of two components: 3.55 percent on 20-year new money bonds and 2.67 percent on shorter maturity refunding bonds. The bonds were sold July 16 and closed July 31.
The second sale, held July 24, was a competitive auction of $200 million in 20-year new money general obligation bonds. A bidding team comprised of Barclay”™s Capital Inc. and Siebert Branford Shank & Co. offered the lowest overall interest cost on the bonds at 3.57 percent.
The third sale, held August 13 and 14, was for $500 million in general obligation bonds, which consisted of $115 million of variable rate bonds; $285 million of tax-exempt fixed-rate bonds; and $100 million of fixed-rate taxable bonds. The overall interest cost on the tax-exempt bonds was 3.49 percent on the 20-year financing. The overall interest cost on the 10-year taxable bonds was 3.19 percent.
“The fact that all of these very different bond sales produced attractive financing costs for the State demonstrates the continued strong investment quality of and enthusiasm for Connecticut debt,” Nappier said. “Low borrowing costs save the State millions of dollars in the long term while contributing to today”™s need for economic growth.”